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Tesla Motors Getting $10 Million From California For Model X Production

The California Energy Commission has awarded a $10 million grant to Tesla Motors for the company to buy equipment necessary for the production of its Model X electric SUV. Tesla will have to match the funds with $50 million of its own money. From the article: "It was something of a love fest for Tesla at the energy commission meeting in Sacramento as commissioners and other regulators praised Tesla as an innovator that has brought automotive manufacturing back to California while creating clean cars and more than 1,500 jobs. 'Tesla has the unique distinction of being the only automaker to actually ask us to increase our targets under zero emission rules,' said Ryan McCarthy, the science and technology policy advisor to the chair of the California Air Resources Board. ... 'Tesla’s Gen 3 vehicle could ultimately be a game changer for electric vehicles and air quality and public health in California,' added McCarthy, referring to Tesla’s plans to build an electric car in the $30,000 range. Its latest car, the Model S sedan, sells between $50,000 and $100,000 and the Model X, which is based on the Model S platform, is expected to sell in that price range."

27 of 191 comments (clear)

  1. Cool. by dtmancom · · Score: 5, Funny

    Nice to see California is flush with cash.

    1. Re:Cool. by Anonymous Coward · · Score: 3, Insightful

      Sometimes the only way to make money is to spend money. Austerity is not necessarily a path to prosperity. I know there's a lot of people who think they can cut cut cut and that'll make things work out for the best, but sometimes you need to expand your offerings, or invest in yourself to reduce costs.

      Think of somebody with a house. Say they spend a lot of money on heating because their house isn't well-insulted. Now they could just cut down their heating, but that has the cost of making the person uncomfortable, and less able to work. Wouldn't it be feasible for said person to go into debt in order to improve their house's ability to retain heat?

    2. Re:Cool. by houstonbofh · · Score: 2, Insightful

      Think of somebody with a house. Say they spend a lot of money on heating because their house isn't well-insulted. Now they could just cut down their heating, but that has the cost of making the person uncomfortable, and less able to work. Wouldn't it be feasible for said person to go into debt in order to improve their house's ability to retain heat?

      We are way beyond "going into debt." We are spending like a drunken frat boy at a bachelor party with a new Amex Gold card. (New card because all the old ones are full.)

    3. Re:Cool. by aaarrrgggh · · Score: 4, Insightful

      Sometimes that idea of "spending to make" is utterly retarded, and one of the scenarios is when you are deep deep in the red and cannot afford the consequences of losing out on the risk you are taking.

      The risks are ever diminishing as you get deeper into debt below your net worth. Taking measured risks is ok, but the extra components are knowing what the potential reward is, and understanding any second and third order risks (such as the losing your car and not being able to get any other work).

      California is spending money to keep jobs in-state. They will recover half the money they spend through sales tax revenue from the equipment purchase. The remaining $3,400 per employee will hopefully be recovered in income taxes, at least over a 2-3 year period. If there happens to be any economic ripple effect then the payback will be much faster.

      Selling a kidney for money to start a business from the ground up on the other hand...

    4. Re:Cool. by Luckyo · · Score: 2

      The problem of energy storage is not yet solved, as stated in the last paragraph of the post you quoted. Therefore, none.

      Granted, with your attention span I would recommend not driving a vehicle at all. If you can't hold attention long enough before hitting reply with quote to read through the entire thing you're going to quote, you must be one hell of a risk factor to both yourself and other drivers when behind the wheel on long rides.

    5. Re:Cool. by amorsen · · Score: 2

      Why do we need to pay taxes then if the government can borrow or print money forever?

      Because the distributive effects of borrowing or printing money forever are nasty. The poor and the young end up paying.

      Neither debt, money-printing, nor taxation directly change the amount of actual goods available. They just change who gets how much of which goods. However, that distribution of goods can certainly influence the amount of goods which will be produced in the future. Generally, society at the same time wants to maximize future productions of goods and also make sure that few people get so little that they cannot live a decent life, for various definitions of a decent life. Right now the Western world is doing a relatively crappy job at both, which is a shame, especially because it was doing quite well until recently.

      --
      Finally! A year of moderation! Ready for 2019?
    6. Re:Cool. by Locutus · · Score: 2

      as one of the comments on TFA site states, 700 jobs at even $50K each and just over 9% State tax is $3.5 million annually. So the State makes their money back just in direct employment taxes in about 3 years. Add to it the sales tax on the vehicles and all the money moving around by building them in CA and it seems like a no brainer considering Tesla has proven they can build good cars already.

      LoB

      --
      "Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
    7. Re:Cool. by haruchai · · Score: 3, Insightful

      Dear AC, truth died long before Obama entered Harvard and the GOP should not only allow the White House to raise taxes, but they should insist that it be higher than what the Dems are asking because, as the party of fiscal conservatism, they should do everything in their power to reverse the damage caused by 8 years of Bush tax cuts and unfunded wars, one of which was started for demonstrably wrong-headed reasons.

      Then, perhaps, truth can live again.

      --
      Pain is merely failure leaving the body
  2. Election year fairy tale ... by perpenso · · Score: 2

    are you suggesting that by relaxing standards a new breed of mom and pop crappy automakers will spring up? realistically it just means lowering a protectionist barrier against china

    Its a myth that China only does low end low tech manufacturing. They are working very hard at moving to more advanced products. Its likely that advanced car designs will also be sold in China, and likely be manufactured there. The necessary technology and manufacturing expertise will most likely be transferred.

    The idea that the US will move to high tech manufacturing while the rest of the world does the low tech manufacturing is an election year fairy tale.

  3. Re:Disgraceful by houstonbofh · · Score: 2

    'Tesla has the unique distinction of being the only automaker to actually ask us to increase our targets under zero emission rules,' said Ryan McCarthy, the science and technology policy advisor to the chair of the California Air Resources Board

    Gee, maybe because it gives Tesla competitive advantage? California is paying this company to exist and then manipulating the market so consumers will buy their vehicles.

    Hmm... I have seen this somewhere before... Change California to Federal Government, and Their Vehicles to Chevy Volt. That worked out so well for everyone...

  4. Re:Isn't California in debt? by nonsensical · · Score: 2

    Maybe they are, but this looks to be a very good investment on their part. If Tesla becomes another big car company, it will quickly pay for itself in new tax revenue for the state. Not to mention the benefits of less emissions for the state in terms of reduced healthcare costs.

  5. Tesla is responsible for GM developing the Volt by Animats · · Score: 4, Interesting

    In Bob Lutz's "Car Guys vs. Bean Counters", Lutz writes that it was the Tesla roadster that woke up GM. Tesla made the first electric that could really zoom. That shook up the car guys; they thought electrics would be wimpy forever. GM was wary after the EV-1, where they lost money on every car. Lutz describes the session where the Chevy Volt was sketched out on a napkin.

    Tesla is making rapid progress on price - a $100K car, a $50K car, a $30K car... That's very Silicon Valley. At last, batteries are good enough. Now they just cost too much.

  6. Re:Isn't California in debt? by houstonbofh · · Score: 2

    Not to mention the benefits of less emissions for the state in terms of reduced healthcare costs.

    That electricity comes from somewhere...

  7. Re:Strict Emissions Standards Benefits Electric Ca by Zumbs · · Score: 2

    The excess electricity produced by wind, hydro and geothermal energy during the night can be used to charge car batteries ;-)

    --
    The truth may be out there, but lies are inside your head
  8. Solar Panels by DaKong · · Score: 2

    Sorry to interrupt the FUD, but the Tesla supercharger stations supply the electricity from solar panels on their rooves. There is no emission shifting.

    If you recharge the cars at your house or office, there may be some emission shifting, but we don't know for sure because we don't know where those facilities' electricity is sourced.

    --
    If not us, who? If not now, when?
  9. So many inaccuracies. by Anonymous Coward · · Score: 5, Interesting

    Ah, somebody is thinking they can get some stories past us.

    Your Jetta DOES run on an energy storage system, that's why you have to keep buying gasoline. Much of which is wasted in terms of heat. But don't pretend it's any different than a battery.

    Most people drive short distances most of the time, they don't take long trips, they don't need to tow, they don't need to go a hundred miles at a time. And no, they don't need to haul hundreds of pounds of stuff. Sorry, but the reality is most people need a lot less car than you think.

    As for maintenance, an electric motor IS a lot simpler than an internal combustion one. They're not expensive to maintain at all, and yes, the batteries can be recycled.

    Unlike the pollutants spewing out the back-end of your Jetta. Those are just going to pollute the air.

    And yes, there ARE electric trucks. And Tractors. Goodness me, don't you know anything?

    1. Re:So many inaccuracies. by rgbrenner · · Score: 2

      slashdot concensus? try Facts
      http://www1.eere.energy.gov/vehiclesandfuels/facts/2010_fotw615.html

      average: 10 miles
      average to work: 12.6 miles

    2. Re:So many inaccuracies. by amorsen · · Score: 2

      Do you feel that the emissions on a higher-efficiency gas/diesel powered vehicle are lower than a vehicle charged by coal power plants

      For one thing, an electric vehicle can just about run on the amount of electricity needed to refine the amount of petrol a petrol car uses to go the same distance... However you are unlikely to place a refinery where energy is expensive, so that is probably hydro power or similar.

      But no, in most cases an electric car run on pure coal power loses out to a typical efficient less-than 100g CO2/km car. If you charge it at night you can win though, because it is likely that the power plants will still be idling, unable to shut down completely. That way you are using power which would otherwise have been thrown away, so your effective emissions are zero. The calculations can get very complicated.

      Anyway, if you are in such an area, please lobby to have your grid connected somewhere with a better mix, preferably somewhere with hydro. It ought to be possible, unless you are in Australia. Most of the good coal (anthracite) is gone, the crap we burn nowadays makes a mess and just gets more and more expensive.

      --
      Finally! A year of moderation! Ready for 2019?
    3. Re:So many inaccuracies. by rgbrenner · · Score: 2

      You are correct.. but the average driver drives 29 miles per day:
      http://www.bts.gov/programs/national_household_travel_survey/daily_travel.html

  10. Re:Strict Emissions Standards Benefits Electric Ca by olden · · Score: 2

    The vast majority of EV charging occurs between midnight and 4am, when there is ample capacity, esp from wind, so EVs actually use the cleanest part of the grid.
    Which in California is quite clean to start with: most of its electricity is coming from carbon-neutral sources (hydro, nuclear, geothermal, wind...); only 7% was coal in 2010 and getting lower.

    Another sobering thought: the energy spent refining gasoline alone (6kW*h / gallon) for a 20-some mpg vehicle would be enough to propel an EV the same distance.

  11. Re:Strict Emissions Standards Benefits Electric Ca by Luckyo · · Score: 4, Informative

    Would still pollute a whole lot less actually. Coal power plants, while very "dirty" by power plant standards, are exceptionally clean by automotive standards.

  12. Re:Isn't California in debt? by Smidge204 · · Score: 5, Informative

    That electricity comes from somewhere...

    And that gasoline comes from somewhere too. Funny how people who drag out this dead horse of an argument so easily overlook that.

    But whatever. For California the electricity source breakdown looks something like this:

    46% Natural Gas
    18% Coal
    14% Nuclear
    11% Hydro
    11% other renewable (wind, solar, geothermal, biomass, etc)

    Probably newer data out there but I'm fairly confident it's close enough for our purposes. So if we weigh emissions by source type and assume a miles-per-gallon and miles-per-kWh for ICE and Electric vehicles, we can get an approximation for how the two compare emissions-wise.

    Natural Gas = 0.46 * 443 = 203.78
    Coal = 0.18 * 1050 = 189 (being pessimistic here)
    Nuclear = 0.14 * 66 = 9.24
    Hydro = 0.11 * 10 = 1.1
    Other = 0.11 * 30 = 3.3 (also pessimistic)

    Total: 406.42 (Say 407) grams of CO2 per kWh generated. We'll bump that up a bit to account for transmission losses (90%) to 452 g/Kwh. Gasoline gives about 8,200 grams of CO2 per gallon. That's just basic a chemistry.

    We'll be again generous and say 30MPG for gasoline and again pessimistic and say 3 mi/kWh for Electric - really stacking the odds against EVs here.

    Gasoline vehicle @ 30MPG = 8200 g/mi / 30MPG = 273 grams CO2 per mile.
    Electric vehicle @ 3 mi/kWh = 452 g/kWh / 3 mi/kWh = 151 grams CO2 per mile.

    So even being pessimistic we see that driving electric vehicles, with their electricity coming from "somewhere", releases nearly half the CO2 as their gasoline counterpart. More importantly - and the brunt of what the OP was saying - is that the local in-city pollution is reduced to zero. Not only are you producing less pollution, you are producing that pollution away from population centers where it does the most harm.
    =Smidge=

  13. Re:Strict Emissions Standards Benefits Electric Ca by Smidge204 · · Score: 5, Informative

    Renewable power does not run at peak all the time. It's the old forms of power - coal especially - that runs flat out 24/7 because throttling those kinds of powerplants is incredibly costly, inefficient and slow to react. It's called "spinning reserve" because the only reasonably way to reduce the output of a coal powerplant is to de-energize the generators and let the turbines keep spinning. If they turn off the furnaces it would take hours to get running again. Throttling a coal powerplant means complete waste of money and resources.

    Electrical generation capacity is critically underutilized at night. You need generating capacity to handle peak demand, but most of the time you are running nowhere near peak demand. The reason why many people in CA are eligible for Time-Of-use metering is because increasing off-peak use actually reduces costs. Many utility providers desperately want people to plug in electric cars at night to "fill the tub" and level out the 24-hour demand curve, allowing more efficient and less costly operation.

    Also, there's that lie again. See my other post in reply to you. But even if that were the case and electric vehicles were actually "coal powered" like you want to believe it's still cleaner than the typical gasoline engine. There are no areas of the country where electric vehicles have higher global warming emissions than the average new gasoline vehicle. (PDF warning, quote from page 11)
    =Smidge=

  14. Re:Money from government by fermion · · Score: 3, Interesting

    You know it is interesting that when the government is taking land from hard working US citizens and giving it to the canadian government so they can move canadian oil into tthe US and increase the indebtedness and serfdom of US citizen to foreign entities, everyone says how wonderful that is. But when government spends money on trying to increase our independence and ability to choose for ourselves without having to consult the United Nations, everyone cry's foul. And if you think there is no link between federal spending and Ca spending, get a clue. Ca, along with New York, is one of the few states that has a net outflow of taxes to the fed. That means that when the US spends money not on anything other than sending it back to the state, Ca is one of the few states where that money is coming from. Not places like Texas where most of the money is given back t the state. Or places like Arizona and Alaska where money is given to the state. Therefore Ca has a great interest in developing technologies that wil make the US less dependent and thus reduce the expenditures.

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  15. Re:Strict Emissions Standards Benefits Electric Ca by Smidge204 · · Score: 5, Insightful

    Goalposts moved!

    Alrighty then. This report conducts an analysis that includes manufacturing the vehicle itself. I've givem my opinion of the report and the overall conclusion is EVs are still a winning proposition.

    specifically the batteries that use some very nasty chemicals, and toxic elements

    More nonsense. All production EVs available now use some form of lithium chemistry. Lithium "mining" is comparatively benign with most of the lithium supply coming from salt flats where the brine is pumped to the surface and allowed to evaporate until the salt you want starts to precipitate out. The electrodes are usually carbon and/or aluminum and the electrolyte - while not something I'd want to be drinking - is typically a volatile organic compound and poses virtually no long-term environmental risk. You must be thinking of nickel batteries. No production EVs I'm aware of use Nickel batteries.

    And they have to be replaced

    So do engines and transmissions, or at least they need a major overhaul. And like traditional automotive parts, batteries are extremely recyclable.

    Least you think you'd need to replace the battery every year or whatever, the standard warranty is equivalent to any other drive train warranty. Even the most pessimistic estimates place the estimated service life of an EV battery at 8+ years (level of abuse notwithstanding). So the issue of cost is moot. Battery packs are also serviceable, in that being highly modular you can replace individual cell sets if that's all that's wrong with it.

    Not saying this is still not better

    That's pretty much what you were implying, though, wasn't it?

    Everyone calls them "zero emission vehicles"

    The vehicle itself produces no emissions. "Zero emissions" is actually a legal definition. I seriously doubt any EV owners, much less EV advocates is there are any non-advocate owners, are under any delusion that their vehicle has zero cradle-to-grave environmental impact. Owners of gasoline powered vehicles, however, seem completely unaware - sometimes deliberately so - of the true environmental costs of their chosen mode of transport.
    =Smidge=

  16. Re:Isn't California in debt? by Smidge204 · · Score: 2

    CO2 is not a pollutant. It's a greenhouse gas. These are two different things entirely. Needless to say actual pollutants like soot, sulfur oxides and nitrogen oxides are all zero at the local level with EVs which means improved air quality and improved health for the citizens.

    The greenhouse effect is based on high school level physics. CO2's ability to absorb infrared in certain wavelength has been known since the 1950s or so. This is established fact. If you want "observed emirical" (sic) evidence, talk to the air force about heat seeking missiles since the development for those is what the original research into how CO2 (and other atmospheric gasses) interact with infrared light.

    And since I know it's going to come up eventually if this thread continues, yes water vapor also absorbs infrared light and contributes to the greenhouse effect. However there are two important reasons why that's a non-starter for arguing against CO2 emissions reduction: 1) The amount of water in the atmosphere is limited since it precipitates out when it gets too high, and 2) Water and CO2 absorb different wavelengths of infrared light.

    No bullshit. Basic physics.
    =Smidge=

  17. Re:Isn't California in debt? by TClevenger · · Score: 2

    It takes 6 kWh of energy just to REFINE one gallon of gasoline from oil. A reasonably efficient EV can go 15 to 20 miles on that amount of electricity alone. And that's before you ship the gasoline to the station, pump it into the car and burn it.